KRS 161.560: Deduction and forwarding of teachers' contributions -- Reporting

requirements -- Picked-up employee contributions -- Correction of omitted

member contributions.

(1) (a) Each agency, school district, and institution employing members of the

retirement system shall deduct from the compensation of each member for

each payroll period subsequent to the date the individual became a member,

the percentage of his or her compensation due under the rates prescribed in

KRS 161.540. No later than fifteen (15) days following each pay date, the

employer shall have on deposit with the retirement system all required

deductions. The retirement system may charge the employer interest at an

annual rate not to exceed eight percent (8%) for deductions not deposited

within the specified fifteen (15) days.

(b) Each employer employing members of the retirement system shall have on file

at the retirement system's office no later than fifteen (15) days following each

pay date payroll reports, contributions lists, and oth er data required by

administrative regulation of the board. The retirement system may impose a

penalty on the employer not to exceed one thousand dollars ($1,000) when the

employer does not meet the reporting date. However, the retirement system

may waive the penalty for good cause.

(c) Each employer employing members of the retirement system shall have on file

at the retirement system's office an annual summary report of member

contributions and periods employed no later than August 1 following the

completion of each fiscal year. The retirement system may impose a penalty

on the employer not to exceed one thousand dollars ($1,000) when the

employer does not meet the August 1 reporting date. However, the retirement

system may waive the penalty for good cause.

(d) The deductions described by paragraph (a) of this subsection shall be made

notwithstanding the fact that the salary as a result may be less than the

minimum compensation provided by law. Every member shall be deemed to

consent and agree to the deductions, and the deductions shall be considered as

having been paid to the member. After August 1, 1982, member contributions

shall be picked up by the agency pursuant to KRS 161.540(2).

(2) If an employer fails to deduct the correct retirement contribution f rom a member's

compensation, the member may make the contribution that should have been

deducted by the employer and receive retirement credit for the payment. For

correction of omitted member contributions that occur more than one (1) year after

the year in which the error was made, the employer shall be responsible for paying

interest to the retirement system at a rate of eight percent (8%) from the end of the

year in which the service was performed to the date of payment.